Effective January 1, 2026, the Illinois Human Rights Act (ILHRA) expands to cover an employer’s use of artificial intelligence (AI) in certain employment decisions. These changes are the result of Illinois HB 3773 passed in August 2024.
Starting January 1, 2026, employers[1] in Illinois are prevented from using AI in the following situations:
- recruitment
- hiring
- promotion
- renewal of employment
- selection for training or apprenticeship
- discharge
- discipline
- tenure
Or the terms, privileges, or conditions of employment, if the use of AI has the effect of subjecting employees to discrimination based on a protected class under Article 5 of the ILHRA or uses zip codes as proxy for protected classes under Article 5 of the ILHRA.
Employers who use AI for any of the employment decisions above must provide a notice to employees stating that AI is being used for one of those purposes. HB3773 directs the Illinois Department of Human Rights (“Department”) to adopt any rules necessary including rules regarding the circumstances and conditions that require notice, timing of the notice, and the means for providing the notice. As of the date of this posting, the Department has not released guidance on the notice requirement.
[1] For the purposes of Article 5 of the ILHRA, an “employer” is any person who employs one or more employees in Illinois during 20 or more calendar weeks in the current or preceding calendar year.
Key Takeaways
Employers with employees in Illinois should review their current practices to determine if and to what extent they utilize AI when making the employment decisions covered by the changes in HB3773. Employers leveraging AI in these situations must provide notice that AI is being used.
The information provided is a summary of laws and regulations relating to employee benefit plan compliance. This information should not be construed as legal advice. In all cases, employers should consult with their own legal counsel.
